Auditors will obtain evidence regarding board of director approval of which of the following transactions?
A)The creation of and dealings with special purpose entities.
B)Customer purchases over $5,000.
C)The purchase of a two month certificate of deposit.
D)Payment of employee salaries.

Question

Quizplus · Accepted Answer

The creation of and dealings with special purpose entities often involves complex financial arrangements and potential risks, thus requiring approval from the board of directors. Auditors need to ensure that such transactions are properly authorized and disclosed. The other options listed do not necessarily require board approval in all cases.

Auditors Will Obtain Evidence Regarding Board of Director Approval of Which